- It has 450,000 listings in 500 cities in India, China, Malaysia, Nepal, the United Kingdom, the United Arab Emirates, Saudi Arabia, the Philippines, Indonesia, and Japan.
- Ritesh Agarwal founded Oyo back in 2013 when he was 19.
The Indian hospitality giant OYO Hotels and Homes has recorded a valuation of $10 billion after its founder Ritesh Agarwal decided to purchase $2 billion in shares from the venture capital firms Sequoia Capital and Lightspeed Venture Partners, the company announced on Friday.
Sequoia Capital held a 10.24% stake in OYO, while Lightspeed had a 13.4% stake. It is not clear how much of the stakes they have sold in the latest transaction.
Ritesh founded Oyo back in 2013 when he was 19. Following the immense growth of his hotel chain business, he opted to increase his 10 percent to 30 percent via a Cayman Islands Company called RA Hospitality Holdings, according to the Wall Street Journal. Softbank also decided to increase its percent ownership as part of the round, now owning 48% of the company.
OYO has raised a whopping $1.6 billion in equity funding to date, reaching a valuation of $5 billion at its last funding round. Other investors in the company include Airbnb, Grab Holdings and Didi Chuxing.
OYO is active in 800 cities in 80 countries, with more than 23,000 hotels in its portfolio. Recently, the company announced plans to invest $300 million in the U.S. market, where it currently operates more than 50 OYO Hotels in 35 cities and 10 states.
Earlier this week, the Gurgaon-headquartered firm introduced OYO Workspaces. The new entity was born out of its acquisition of Innov8, a co-working startup with more than 200 employees.
In 2012, then 18-year-old Ritesh Agarwal, from Odisha’s Rayagada district, launched Oravel Stays, a website for listing and booking budget lodging. After three months of research and staying in over 100 bed and breakfast homes, guest houses, and small hotels, he pivoted Oravel to OYO in 2013.
OYO Rooms is a website for booking budget lodging. It is owned by Oravel Stays Private Limited and is based in Gurgaon, Haryana, India. It is the largest such website in India.
It has 450,000 listings in 500 cities in India, China, Malaysia, Nepal, the United Kingdom, the United Arab Emirates, Saudi Arabia, the Philippines, Indonesia, and Japan.
It has been an upward journey for OYO after the establishment with the company recently claiming that it is the 3rd largest hotel chain in terms of beds.